Armenia getting into economic panic

The Armenian government has called for an extraordinary parliamentary session to discuss the deteriorating economic situation.

The parliament is set to hold its last meeting of the spring session on June 12 but the government called for a special session for June 18.

The government said the special session will discuss urgent issues aimed at bringing significant changes to the economy.

"Some legislative packages on stimulation of small and medium business, tax discipline will be discussed in the special session," the government reported.

Armenia's economic panic is quiet understandable, as not only the international organizations, but also the country's Central Bank keep downing the economic growth forecasts in 2014.

The Armenian Central Bank recently reduced economic growth forecast for the country in 2014. The economic growth is now expected at 4.1-4.8 percent in 2014, against projected five percent. The bank linked the reduction with an indefinite situation in Armenia's external trade partners and decreasing of demands.

The International Monetary Fund (IMF) recently once again slashed economic forecast for Armenia.

IMF experts believe that the Armenian new government is not capable to ensure the projected five percent economic growth in 2014.

"The growth rate will be lower than 4.2 percent," IMF Resident Representative in Armenia Teresa Daban Sanchez told local media.

Armenia achieved a 3.1 percent economic growth during the first quarter of 2014, which is almost twice less compared with the same period of 2013, when the economic growth was 7.1 percent.